Texas has done a commendable job of protecting the environment while sustaining a productive private-sector energy industry. The state has made huge leaps in clean air attainment despite a growing population and is also a national leader in energy technologies such as hydraulic fracturing, enhanced oil recovery, carbon capture and sequestration, as well as the development of a digital grid and advanced metering systems that improve energy efficiency.
The shale boom, which has greatly benefited the entire state, will continue to push low-cost, clean natural gas into the marketplace. The North Texas communities affected by the Barnett Shale in particular have benefited from the creation of 100,000 jobs and accelerated economic growth attributable to the development of the region's shale formations.A similar boom is under way in South Texas. Texas' experience with shale development underscores that the state's approach to the energy sector yields tremendous economic benefits while protecting the environment.Texas must continue to press policies that enhance economic freedom, sensible and science-based regulations and a robust private-sector energy economy. That means pursuing at least four policy measures:The competitive electric retail market must be expanded to closed markets in Texas. Despite some major electric markets being opened to competition in 1999, many parts of the state remain captive to municipal monopolies, notably Austin and San Antonio.Data from the Public Utility Commission of Texas show that competitive prices available in Dallas-Fort Worth, Lewisville, Abilene, Houston and Corpus Christi are among the lowest in the entire nation. At a minimum, it is time to give electric customers in all major metropolitan areas a choice in a free and competitive market.The state must continue to improve its energy infrastructure to ensure that providers can reliably generate and deliver energy to consumers as the population and economic base continue to grow. Keeping the power flowing in peak demand requires a regulatory environment in which utilities have the confidence to make investments in generation and transmission infrastructure.The recent increase in the regulatory cap on wholesale power prices authorized by the PUC is a good step, but in the long run the state has no role in setting prices for electricity any more than it does for milk. It should start a gradual move away from price controls.Legislators must pass an Interstate Energy Compact to try to shield state producers from overbearing, deliberately punitive and misguided federal regulation of the energy industry. The cross-state air pollution rule, a faulty endangerment finding on carbon dioxide and the rejection of the Keystone XL pipeline permit needlessly threaten our energy security and our economy as a whole.In contrast, the success of Texas, Oklahoma and Louisiana in regulating oil and gas production is sufficient evidence that states are capable of doing the job.Finally, the state's urgent water needs must be addressed by incorporating free-market approaches. Water is crucial to the entire economy, including the energy sector, yet a complex web of state and local regulations inhibits the transfer of water to where it is needed.The oil and gas industry is a guide for responsible natural resource management and hints at the potential of private water development. This same model could work with water so that industrial, urban and rural water needs can be met.Texas has demonstrated that sensible regulation of the energy sector can foster economic growth, create jobs and generate significant tax revenues for the state, all while operating facilities safely. State leaders must continue to pursue and advocate for a pro-growth policy that bears broad economic and environmental benefits for our state.John Colyandro is executive director and Tom Aldred is director of policy at the Texas Conservative Coalition Research Institute in Austin. www.txccri.orgHave more to add? News tip? Tell us
